Buying and selling tokenised securities on a trading venue, exchange order book or on-chain market after issuance.
Announced7Proof of concept1Pilot3Live (limited)22Live (scaled)8Inactive6
Why tokenise?
Draft analysis · not yet reviewed by the editor · updated 12 Oct 2026. The flows below are simplified for general understanding. Real implementations vary a great deal and are often far more complex.
Buying a share today means an order on an exchange during market hours, then a day or more while clearing houses, depositories and custodians settle it. Tokenised shares can trade on venues that settle in seconds, or around the clock on crypto platforms that reach investors in many countries. Volumes are still tiny next to stock markets, and many popular "stock tokens" are tracker products, not the shares themselves.
Improves an existing processStock trading in developed markets already works well. Tokenisation offers three different things. Crypto-native issuers (xStocks, Ondo, Robinhood, Binance) sell tokens that track US shares to non-US investors, trading at hours exchanges are closed; holders usually get a claim on the issuer, not shareholder rights. Regulated DLT venues under the EU Pilot Regime, such as 21X, trade and settle tokenised securities against digital cash in one step. And Nasdaq and NYSE plan to let ordinary shares be delivered as tokens, at first still settling through the usual depository a day later.
The problem today
Even after the US moved from two days to one in May 2024, a share trade still settles a business day after it is agreed. The SEC made the change to cut the credit, market and liquidity risk that builds up in that gap.[1]
Settlement passes through brokers, custodians and central securities depositories, each with its own records, exposing both sides to the cost of replacing a trade that fails.[2]
Investors outside the US reach US shares through local brokers and intermediaries, and only during US trading hours. Ondo frames its EEA approval as opening US stock exposure to more than 500 million potential investors in 30 countries.[3]
Regulators stress that public equity markets are already highly efficient after decades of modernisation, which is one reason tokenised stocks have stayed small.[4]
Today vs tokenised (simplified)
End to end:one business day after the trade (US), within exchange hours→seconds on DLT venues; any hour on crypto venues · Nasdaq and NYSE plans for tokenised shares keep T+1 settlement at DTC, with the token delivered afterwards.
Todayend to end: one business day after the trade (US), within exchange hours
InvestorPlaces an order with a broker, during exchange hoursmarket hours, business days
ExchangeMatches buyers and sellersmilliseconds
Clearing houseNets trades and guarantees them until settlementsame dayremoved
Central securities depositoryMoves shares against cash between brokers' accountsone business day (US)removed
Brokers and custodiansUpdate each investor's holding down the custody chain and reconcileone business day or moreremoved
Tokenisedend to end: seconds on DLT venues; any hour on crypto venues
InvestorFunds a wallet or exchange account, often with a stablecoinany time
Trading venueMatches the order on a DLT exchange, crypto exchange or on-chain marketseconds
Smart contractSwaps the security token for digital cash in one step, so neither side can defaultwithin seconds
Tracker issuerBuys or sells the real shares at a broker and creates or cancels tokens to match demandwhen the underlying market is open
InvestorHolds the token in its own wallet, transfers it or pledges it as collateralany time
Tokens tracking US shares are sold through crypto exchanges and wallets to investors in Europe and elsewhere who would otherwise need a US broker. xStocks counts tens of thousands of on-chain holders; Ondo reports billions of dollars of trading. Access is for non-US investors only, and what they hold is usually a claim on the issuer.
EvidencedMeaningfulAvailable now
Ondo: over $18bn cumulative trading volume and 260+ assets (May 2026); xStocks: over $25bn lifetime volume, 80,000+ on-chain holders (Feb 2026)Operator-reported[5]
Needs regulatory change
Ondo Global Markets tokenised stocks and ETFs: Ondo's tokens tracking more than 260 US stocks and ETFs are distributed through crypto exchanges, wallets and custodians such as Binance, Bitget and MetaMask on three blockchains, and are approved for offer in 30 European countries. Within eight months of launch the platform passed $1 billion in value locked and over $18 billion in cumulative trading volume.[3]
xStocks tokenised equities (Backed, Kraken): Kraken reports that xStocks, sold to investors outside the US through crypto exchanges and on-chain, passed $25 billion of lifetime transaction volume by February 2026, about $3.5 billion of it on-chain, with more than 80,000 unique on-chain holders. Assets under management were much smaller, at about $225 million.[5]
Stock tokens trade outside US market hours, 24/5 on some exchanges and 24/7 on-chain. When the US market is shut, prices are set without the main market open, so spreads and gaps can be large.
EvidencedMeaningfulAvailable now
Needs cash on the ledgerNeeds counterparties on the ledger
xStocks tokenised equities (Backed, Kraken): xStocks, tokens backed one for one by US shares, trade 24 hours a day on five days a week on Kraken and around the clock on public blockchains, outside US exchange hours. Combined exchange and on-chain volume passed $10 billion within about six months of launch. Holders have creditor rights against the issuer, not direct ownership of the shares.[6]
A stock token bought on one platform can be used in another, for example posted as collateral to borrow stablecoins on a Solana lending protocol, without selling the position. This is a crypto-market use so far.
xStocks tokenised equities (Backed, Kraken): Kamino, the largest lending protocol on Solana, added xStocks as collateral in July 2025, starting with a token tracking Apple shares, so holders can borrow stablecoins against their stock exposure without selling it. The same token can therefore be traded, held in a wallet and pledged in another application. This is crypto-market activity, not use by banks or clearing houses.[7]
On a DLT venue the security and the cash swap in one transaction, so a buyer cannot pay without receiving or vice versa. 21X matches and settles trades this way in about two seconds against stablecoins, but has published no trading volumes, and ESMA found minimal live trading on EU DLT venues.
Theory · high confidenceMeaningfulAs networks grow
Needs counterparties on the ledgerNeeds cash on the ledgerNeeds smart contracts
Settlement can shrink from a day to seconds when the security and cash are on the same ledger. US exchange plans do not deliver this yet: tokenised trades on Nasdaq will clear and settle at DTC on T+1, with the token issued afterwards; DTCC plans to explore digital cash in 2027.
Theory · high confidenceMeaningfulFuture state
Needs counterparties on the ledgerNeeds cash on the ledger
New evidence in the register since this was written; due for review.
21X says its trades need no central securities depository or clearing service. In practice tokenisation has added new roles, such as token issuers, platforms and wallet providers, which IOSCO says undercuts the hoped-for reduction in intermediaries.
Theory · low confidenceMarginalFuture state
Needs counterparties on the ledger
Where it is now
47 tracked deployments, 30 live. 3 of 6 benefits evidenced in production.
Announced7Proof of concept1Pilot3Live (limited)22Live (scaled)8Inactive6
The full potential
Tokenised stocks were worth about $940 million on public chains in early 2026, against a global equity market of around $115 trillion. Their early pull is access: non-US investors trading US shares at any hour through crypto apps. The larger shift would come if exchanges, depositories and brokers move ordinary shares onto ledgers with cash settlement on-chain, which Nasdaq, NYSE and DTCC are preparing for but have not yet switched on. Secondary trading is the stage where tokenisation's promised liquidity gains are least visible.
Tokens that are the security itself, with full shareholder rights, rather than tracker claims on an issuer
Cash on the ledger (central bank money, deposit tokens or regulated stablecoins) so trades can settle in one step
Market makers and enough buyers and sellers on each venue, without splitting liquidity across chains
Higher size limits and a permanent EU framework for DLT venues, plus access to central bank money
Rules for fair pricing and investor protection when trading happens while the main market is closed
Who it suits
Market infrastructure (FMI), Broker-dealer or market maker, Crypto exchange, Asset manager, Fintech or technology firm, Investor (VC or PE) · effort: high · value depends on counterparties joining
Venues need a DLT trading and settlement licence (EU Pilot Regime) or an exchange rule change, plus a digital transfer agent or depository
Tracker issuers need a regulated prospectus, custody of the underlying shares and a broker to buy and sell them
Investors need wallets or a broker that supports tokens, and must meet eligibility rules (most products exclude US persons)
Limits and open questions
Many "stock tokens" do not make the holder a shareholder. IOSCO warns some only promise the price gains of a company, without shareholder rights, and disclosures may not make this clear. xStocks holders, for example, have creditor rights against the issuer.[4]
Liquidity is thin. IOSCO finds the promised secondary-market liquidity largely not achieved, and native tokenised securities show low trading; tokenised public stocks were worth only about $16 million in March 2025.[4]
Regulated DLT venues barely trade. ESMA counted three authorised infrastructures under the EU Pilot Regime with minimal live trading, citing size thresholds, lack of interoperability and no access to central bank money.[10]
Reported volumes need care: xStocks' $25 billion includes exchange trading, minting and redemption, only about $3.5 billion was on-chain, and assets held were about $225 million.[5]
Spreading the same stock across many chains and venues splits liquidity, and on-chain markets can be distorted by wash trading.[4]
[4]Tokenization of Financial Assets: Final Report (FR/17/25)— International Organization of Securities Commissions, Nov 2025. Accessed 12 Oct 2026. Cites the WEF for the $16 million tokenised public stocks and $115 trillion global equity figures..A